Document Overview

Regulatory communication from Hitachi Energy India Limited to shareholders regarding tax deduction at source procedures for dividend payments for financial year 2025-26.

Dividend Declaration

  • The Board of Directors at their meeting held on May 25, 2026 recommended a final dividend of ₹8.00 per equity share (400% on face value of ₹2.00 each) for financial year ended March 31, 2026.
  • Record Date fixed for determining eligible shareholders: August 21, 2026
  • Dividend payment subject to shareholder approval at Annual General Meeting scheduled for August 28, 2026

Tax Deduction at Source Framework

Pursuant to Income Tax Act, 2025 as amended by Finance Act, 2026:

  • Dividend income taxable in hands of shareholders
  • Company required to withhold taxes at prescribed rates
  • TDS rates vary based on residential status and shareholder category
  • No TDS for Resident Individual Shareholders if total dividend for Tax Year 2026-27 does not exceed ₹10,000

Documentation Requirements

Deadline: August 14, 2026

Documents must be uploaded to: https://ris.kfintech.com/clientservices/investors/taxforms.aspx

Resident Shareholders

A.1 Taxable Cases (Other than exempt individuals):

  • Standard TDS rate: 10% with valid PAN and Aadhaar linkage
  • 20% TDS rate for: No/invalid PAN, PAN not linked with Aadhaar
  • Lower tax deduction available with certificate from Income Tax Department u/s 395(1)

A.2 Nil TDS Cases (With required documentation):

1. Resident Individual Shareholders submitting Form 121 (previously Form 15G/15H)

2. Insurance Companies exempt u/s 393(4)

3. Government entities, RBI, Mutual Funds, tax-exempt corporations

4. Category I and II Alternative Investment Funds

5. National Pension Scheme entities

6. Recognized PF funds, Superannuation funds, Gratuity funds

7. Other entities exempt u/s 393(4)

Non-Resident Shareholders

Required Documentation:

  • Self-attested PAN copy (if available)
  • Tax Residency Certificate for Tax Year 2026-27 (covering April 1, 2026 to March 31, 2027)
  • Self-Declaration Form 41 (previously Form 10F)
  • Self-declaration for no permanent establishment in India (Annexure-3)
  • Lower tax withholding certificate if available u/s 395(1)

Important Notes

1. Documents submitted after August 14, 2026 will not be considered for TDS rate determination

2. TDS rate determination subject to verification by Company

3. Soft copy TDS certificates will be emailed to shareholders post-dividend payment

4. Tax credit statements available at Income Tax Department website (Form 168, previously 26AS)

5. Shareholders responsible for any tax demands arising from misrepresentation

6. Company not liable for higher TDS deductions - refund claims must be filed with Income Tax Department

7. Shareholders must update details with depositories (dematerialized) or RTA KFin Technologies Limited (physical)

8. TDS deduction based on records available with RTA - no revision requests entertained

Disclaimer

The communication explicitly states it shall not be treated as tax advice from the Company or its RTA, and shareholders should consult tax professionals for their specific tax matters.